captioning sponsored by macneil/lehrer productions >> lehrer: good evening. i'm jim lehrer in washington. and i welcome you to this special edition of the "newshour." in a few minutes, president obama will deliver his first state of the union address to a joint session of congress. you're looking at a live shot of the floor of the u.s. house of representatives where most of official washington is gathering to hear the speech. it comes as the president is confronting sagging approval ratings and the political fallout from a surprisingly strong republican victory last week in the massachusetts senate race. white house officials say tonight's address will mark a shift in tone and emphasis for

the president, in response to rising public anger over the state of the economy. with me tonight, as they often are on big occasions, are shields and brooks-- that's syndicated columnist mark shields and "new york times" columnist david brooks. david, what are your expectationes on the speech tonight, sir? >> on policy it's going to be jobdz and the economy. how does he talk about health care? is it sort of a throw-away line-- yes, i'm still for it-- or does he actually come out strong and say here's how we're going to do it after all this. and second, tone. what do i take away from massachusetts? what havey learned? how combative am i? what's the effect of the last couple of weeks? >> lehrer: mark, i'm going to let you answer that, too. on camera, we have the president's cabinet. there is peter orzag, ron kirk, who is the u.s. trade representative. there, of course, is eric holder the attorney general of the united states.

several cabinet members. ken salazar, secretary of the interior, former senator from colorado on the right in glasses. there's susan rice, the u.s. ambassador to the united nations behind her, jim jones . form i commandant of the marine corps , some folks-- answer-- what are you looking for tonight? what do you hope for or expect? >> how the president comes out. i mean, obviously, he's got to be optimistic but he's got to be realistic about the struggles that people in the country are going through. does he acknowledge mistakes just in communication? "i was too busy to tell you?" or does he acknowledge misnakes policy? and i think health care is the 800-pound gorilla in the room that they have to address because it is inconceivable the democrats go into 2010 election, trying

to walk away from health care. it would be such a negative and-- not only for the country but for them politically. >> lehrer: you think, david, the president will take on the polarization in the congress, all democrats feel one way on everything , all republicans feel a different way, lockstep, boom, boom, boop? is he likely to take that on directly? >> very much so, and also the trust in government. i think one of the things they've concluded is people don't trust government and that's made it hard to do anything. i think he wants to address that problem, too. >> lehrer: is that a salable point outside of washington? >> well other the distrust in government and the belief that the government doesn't work. the "wall street journal"/nbc poll asked a question at the time of the gore-bush runoff in florida and the constitutional confidence of the country is high going through a difficult time, and right now it is about one-half, a little less than one-half of what it was then.

28% of americans have a positive confidential feeling. >> lehrer: there are the joint chiefs, general mcmullin, the chairman of the joint chief of staff. >> there's also talk of throwing in the "don't ask, don't tell" policy. >> lehrer: which will affect those men and the men and women that work for him. one thing for -- which we did not mention, of course , there is a republican response immediately after the president, given by bob o'donnell, who is the recently installed governor of virginia. in fact, just two weeks ago he took the oath of office. and he's going to, in a new wrinkle, instead of using a cold room where whoever the responder is , all by him or herself , he's going to speak from the chamber of the house of delegates in richmond , and there will be, you

know, a couple of hundred people there, his own walk-through and his own crowd. >> in stead of the state of the union he could say it's the state of the confed racy. >> lehrer: he would say the state of the state, mark. we're go to get an announcement here. i think, obviously,-- we'll see. here we go. they're having a decorum problem on the floor of the united states congress. >> there's a shocker. >> lehrer: yeah. now, in a moment, the president will be announced. actually, the committee... will be announced first. these are members of the congress from both parties.

>> down at the end of the hall when he gets there. the presiding officer, the speaker of the house. vice president biden behind him right now.

there's a glimpse of michelle obama, the first lady of the land. there are a mixture of guests up there with mrs. obama , and mrs. biden . there are a mix of people from the military, from law enforcement, people who -- with ties to the tragedy in haiti. there are all kinds of folks who have been specially invited to sit with the first lady and the second lady. the president sometimes makes reference to people who are in the audience. some presidents do. we'll see what happens here tonight. the senator from montana on the right, a k player in the health care reform . there you see behind the

president the members of the united states supreme court, justice alito right there. >> secretary geithner, under siege. a bad day teoffice. had a bad week. he was rough questions. there's stephen breyer . the chairman of the joint chiefs. he and jim jones are the two tallest men in the room, usually. former head of the chicago schools, a friend of the president.

for historical purposes the back of the head of the fwra-haired man, tom foley from the state government washington. still lives in washington. now, remember here's what happens. the president is introduced and another introduction, and the show will get on the road here. almost, not quite. >> thank you. thank you.

>> there's mrs. obama and err invited guests. amid moments of great strife and great struggle.

it's tempting to look back on these moments and assume that our progress was inevitable, that america was always destined to succeed. but when the union was turned back at bull run and the allies first landed at omaha beach, victory was very much in doubt. when the market crashed on black tuesday and civil rights marchers were beaten on bloody sunday, the future was anything but certain. these were the times that tested the courage of our convictions and the strength of our union. and despite all our divisions and disagreements, our hesitations and our fears, america prevailed because we chose to move forward as one nation. as one people. again we are tested. and again we must answer

history's call. one year ago i took office amid two wars, an economy rocked by a severe recession, a financial system on the verge of collapse, and a government deeply in debt. experts from across the political spectrum warned that if we did not act, we might face a second depression. so we acted. immediately and aggressively. and one year later, the worst of the storm has passed. but the devastation remains. one in ten americans still cannot find work. many businesses have shuttered, home values have declined, small towns and rural communities have been hit especially hard. and for those who'd already known poverty, life's become

that much harder. this recession has also compounded the burdens that america's families had been dealing with for decades : the burden of working harder and longer for less. of being unable to save enough to retire or help kids with college. so i know the anxieties that are out there right now. they're not new. these struggles are the reason i ran for president. these struggles are what i've witnessed for years in places like elkhart indiana, and illinois. i hear about them in the letters that i read each night. the toughest to read are those written by children asking why they have to move from their homes. asking when their mom or dad will be able to go back to work. for these americans and so many

others, change has not come fast enough. some are frustrated, some are angry. they don't understand why it seems like bad behavior on wall street is rewarded but hard work on main street isn't. or why washington has been unable or unwilling to solve any of our problems. they're tired of the partisanship and the shouting and the pettiness. they know we can't afford it, not now. so we face big and difficult challenges. and what the american people hope, what they deserve is for all of us-- democrats and republicans-- to work through our differences. to overcome the numbing weight of our politics. for while the people who sent us here have different backgrounds, different stories, different beliefs, the anxieties they face

are the same. the aspirations they hold shared a job that pays the bills, a chance to get ahead. most of all, the ability to give their children a better life. and you know what else they share? they share a stubborn resilience in the face of adversity. after one of the most difficult years in our history, they remain busy building cars and teaching kids, starting businesses and going back to school. they're coaching little league and helping their neighbors. one woman wrote to me and said "we are strained but hopeful. struggling but encouraged ." it's because of this spirit, this great decency and great strength that i have never been more hopeful about america's future than i am tonight. (applause)

despite our hardships, our union is strong. we do not give up. we do not quit. we do not allow fear or division to break our spirit. in this new decade, it's time the american people get a government that matches their decency, that embodies their strength. (applause) and tonight, tonight i'd like to talk about how together we can deliver on that promise.

it begins with our economy. our most urgent task upon taking office was to shore up the same banks that helped cause this crisis. it was not easy to do. and if there's one thing that has unified democrats and republicans and everybody in between, it's that we all hated the bank bailout. (applause) i hated it... i hated it, you hated it, it was about as popular as a root canal. (laughter) but when i ran for president, i promised i wouldn't just do what was popular, i would do what was necessary. and if we had allowed the meltdown of the financial system unemployment might be double what it is today. more businesses would certainly

have closed. more homes would have surely been lost. so i supported the last administration's efforts to create the financial rescue program. and when we took that program over, we made it more transparent and more accountable and as a result the markets are now stabilized and we've recovered most of the money we spent on the banks. (applause) most, but not all. to recover the rest, i proposed a fee on the biggest banks. (cheers and applause) now, i know wall street isn't keen on this idea. but if these firms can afford to handout big bonuses again, they can afford a modest fee to pay

back the taxpayers who rescued them in their time of need. (cheers and applause) as we stabilized the financial system, we also took steps to get our economy growing again, save as many jobs as possible, and help americans who'd become unemployed. that's why we extended or increased unemployment benefits for more than 18 million americans, made health insurance 65% cheaper for families who get their coverage through cobra. and passed 25 different tax cuts. now, let me repeat: we cut taxes. we cut taxes for 95% of working families. we cut taxes for small

businesses. we cut taxes for first-time home buyers. we cut taxes for parents trying to care for their children. we cut taxes for eight million americans paying for college. (cheers and applause) i thought i'd get some applause on that one. (laughter) (cheers and applause) as a result, millions of americans had more to spend on gas, food, and other necessities all of which helped businesses keep more workers. and we haven't raised income

taxes by a single dime on a single person. not a single dime. (applause) now, because of the steps we took, there are about two million american s working right now who would otherwise be unemployed. (applause) 200,000 work in construction and clean energy. 300,000 are teachers and other education workers. tens of thousands are cops, firefighters, correctional officers, first responders. (applause) and we're on track to add another 1.5 million jobs to this total by the end of the year. the plan that has made all of this possible-- from the tax cuts to the jobs-- is the recovery act. (applause) that's right.

the recovery act. also known as the stimulus bill. economists on the left and the right say this bill has helped save jobs and avert disaster. but you don't have to take their word for it. talk to the small business in phoenix that will triple its work force because of the recovery act. talk to the window manufacturer in philadelphia who said he used to be skeptical about the recovery act until he had to add two more work shifts just because of the business it created. talk to the single teacher raising two kids who was told by her principal in the last week of school that because of the recovery act she wouldn't be laid off after all. there are stories like this all across america.

and after two years of recession, the economy is growing again. retirement funds have started to gain back some of their value. businesses are beginning to invest again. and slowly, some are starting to hire again. but i realize that for every success story there are other stories. of men and women who wake up with the anguish of not knowing when where their next paycheck will come from, who send out resumes week after week and hear nothing in response. that is why jobs must be our number-one focus in 2010 and that's why i'm calling for a new jobs bill tonight. (applause)

now, the true engine of job creation in this country will always be america's businesses. (applause) (cheers and applause) but government can create the conditions necessary for businesses to expand and hire more workers. we should start where most new jobs do: in small businesses, companies that begin when... (applause) companies that begin when an entrepreneur takes a chance on a dream or a worker decides it's time she became her own boss. through sheer grit and determination, these companies have weathered the recession and

are ready to grow. but when you talk to small business owners in places like allentown, pennsylvania, or aleria, ohio. you find out that even though banks on wall street are lending again, they're mostly lending to bigger companies. financing remains difficult for small business owners across the country. even those that are making a profit. so tonight i'm proposing that we take $30 billion of the money wall street banks have repaid and use it to help community banks give small businesses the credit they need to stay afloat. (cheers and applause) i'm also proposing a new small business tax credit. one that will go to over one million small businesses who

hire new workers or raise wages. (applause) while we're at it, let's also eliminate all capital gains taxes on small business investments and provide a tax incentive for all large businesses and all small businesses to invest in new plants and equipment. (applause) next, we can put americans to work today building the infrastructure of tomorrow. (applause) from the first railroads to the interstate highway systems, our nation has always been built to compete. there's no reason europe or china should have the fastest trains. or the new factories that

manufacture a clean energy product. tomorrow i'll visit tampa, florida, where workers will soon break ground on a new high-speed railroad funded by the recovery act. there are projects like that all across this country that will create jobs and help move our nation's goods, services, and information. (applause) we should put more americans to work building clean energy facilities and give... (applause) and give rebates to americans who make their homes more energy efficient which support clean energy jobs. and to encourage these and other businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas and give those tax breaks to companies that create jobs right here in the united states of america. (cheers and applause)

now, the house has passed a jobs bill that includes some of these steps. (cheers and applause) as the first order of business this year, i urge the senate to do the same, and i know they will. (cheers and applause) they will. people are out of work. they're hurting. they need our help. and i want a jobs bill on my desk without delay. (applause) but the truth is, these steps won't make up for the seven million jobs that we've lost

over the last two years . the only way to move to full employment is to lay a new foundation for long-term economic growth and finally address the problems that america's families have confronted for years. we can't afford another so-called economic expansion like the one from the last decade. what some call the lost decade. where jobs grew more slowly than during any prior expansion. where the income of the average american household declined while the cost of health care and tuition reached record highs. where prosperity was built on a housing bubble and financial speculation . from from the day i took office i've been told that addressing our larger challenges is too ambitious. such an effort would be too contentious. i've been told that our political system is too

gridlocked and that we should just put things on hold for a while. to those who make these claims, i have one similar until question: how long should we wait? how long should america put it future on hold? (applause) you see, washington has been telling us to wait for decades. even as the problems have grown worse. meanwhile, china piece not waiting to revamp its economy. germany is not waiting. india's not waiting. these nations are... they're not standing still. these nations aren't playing for second place. they're putting more emphasis on math and science. they're rebuilding their infrastructure. they're making serious investments in clean energy because they want those jobs. well, i do not accept second place for the united states of america! (cheers and applause)

as hard as it may be, as uncomfortable and contentious as the debates may become, it's time to get serious about fixing the problems that are hampering our growth . now, one place to start is serious financial reform. look, i am not interested in punishing banks. i'm interested in protecting our economy. a strong, healthy financial

market makes it possible for businesses to access credit and create new jobs. it channels the savings of families with investments that raise incomes. but that can only happen if we guard against the same recklessness that nearly brought down our into economy. we need to make sure consumers and middle-class families have the information they need to make financial decisions. we can't allow financial institution s-- including these take your deposits-- to take risks that threaten the whole economy. now, the house has already passed financial reform with many of these changes and the lobbyists are trying to kill it . well we cannot let them win this fight. and if the bill that ends up on my desk does not meet the test of real reform, i will send it back until we get it right. we've got to get it right.

(cheers and applause) next, we need to encourage american innovation. last year, we made the largest investment in basic research funding in history. (applause) an investment that could lead to the world's cheapest solar cells or treatment that kills cancer cells but leaves healthy ones untouched . and no area is more ripe for such innovation than energy. you can see the results of last year's investments in clean energy in the north carolina company that will create 1,200 jobs nationwide helping to make advanced batteries. ngor the california business that will put a thousand people to work making solar panels .

but to create more of these clean energy jobs, we need more production, more efficiency, more incentives. and that means build a new generation of safe, clean, nuclear power plants in this country. (applause) it means making tough decisions about opening new offshore areas for oil and gas development. (applause) it means continued investment in biofuels and clean coal technologies. (applause)

and, yes, it means passing a comprehensive energy and climate bill which incentives that will make clean energy the profitable kind of energy in america. (applause) i'm grateful to the house for passing such a bill last year. (applause) and this year i'm eager to help advance the bipartisan effort in the senate . i know there have been questions about whether we can afford such changes in a tough economy. i know that there are those who disagree with the overwhelming scientific evidence on climate change. (laughter) but here's the thing, even if you doubt the evidence, providing incentives for energy efficiency and clean energy are the right thing to do for our future. because the nation that leads

the clean energy economy will be the nation that leads the global economy and america must be that nation! (applause) third, we need to export more of our goods. (applause) because the more products we make and sell to other countries, the more jobs we support right here in america. so tonight we set a new goal. we will double our exports over the next five years, an increase that will support two million jobs in america. (applause)

to help meet this goal, we're launching a national export initiative that will help farmers and small businesses increase their exports. and reform export control s consistent with national security. we have to seek new markets aggressively. just as our competitors are. if america sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. (applause) but realizing those benefits also means enforcing those agreements so our trading

partners play by the rules. (applause) and that's why we'll continue to shape a trade agreement that opens global markets and why we will strengthen our trade relations in asia and with key partners like south korea and panama and colombia. (applause) fourth, we need to invest in the skills and education of our people. (applause) now this year we've broken through the stalemate between left and right by launching a national competition to improve our schools. and the idea here is simple. instead of rewarding failure, we only reward success. instead of funding the status quo, we only invest in reform.

reform that raises student achievement, inspires students to excel in math and science, and turns around failing schools that steal the future of too many young americans from rural communities to the inner city. in the 21st century the best anti-poverty program around is a world-class education. (cheers and applause) and in this country, the success of our children cannot depend more on where they live than on their potential. when we renew the elementary and secondary education act, we will work with congress to expand these reforms to all 50 states. still, in this economy a high school diploma no longer guarantees a good job.

that's why i urge the senate to follow the house and pass a bill that will revitalize our community colleges, which are a career pathway to the children of so many working families. (applause) to make college more affordable, this bill will finally end the unwarranted taxpayer subsidies that go tobacks for student loans. instead, let's take that money and give families a $10,000 tax credit for four years of college and increased pell grants. (applause) and let's tell another one million students that when they graduate they will be required

to pay only 10% of their income on student loans and all of their debt will be forgiven after 20 years and forgiven after ten years if they choose a career in public service. because in the united states of america, no one should go broke because they chose to go to college! (applause) and, by the way, it's time for colleges and universitys to get serious about cutting their own costs, because they, too, have a responsibility to help solve this problem. now, the price of college tuition is just one of the burdens facing the middle-class . that's why last year i asked vice president biden to chair a task force on middle-class families. that's why we're nearly doubling the child care tax credit and making it easier to save for retirement by giving access to every worker a retirement account and expanding the tax credit for those who start a nest egg.

that's why we're working to lift the value of a family's single-largest investment, their home. the step wes took last year to shore up the housing market have allowed millions of americans to take out new loan s and save an average of $1,500 on mortgage payments. this year we'll step up refiennesing so that homeowners can move into more affordable mortgages. (applause) and it is precisely to relieve the burden on middle-class families that we still need health insurance reform. (applause) (cheers and applause) yes, we do.

now, let's clear a few things up. (laughter) i didn't choose to tackle this issue to get some legislative victory under my belt. and by now, it should be fairly obvious that i didn't take on health care because it was good politics. (laughter) i took on health care because of the stories i've heard from americans with pre-existing conditions whose lives depend on getting coverage. patients who've been denied coverage. families-- even those with insurance-- who are just one illness away from financial ruin after nearly a century of trying democratic administrations, republican administrations, we are closer than ever to bringing more security to the lives of so many americans.

the approach we've taken would protect every american from the worst practices of the insurance industry. it would give small businesses and uninsured americans a chance to choose a health care plan in a competitive market. it would require every insurance plan to cover preventative care. and by the way, i want to acknowledge our first lady michelle obama who this year is creating a national movement to tackle the epidemic of childhood obesity and make kids healthier. thank you, honey. (cheers and applause) she gets embarrassed. (laughter) our approach would preserve the right of americans who have

insurance to keep their doctor and their plan. it would reduce costs and premiums for millions of families and business. and according to the congressional budget office, the independent organization that both parties have cited as the official score keeper for congress, our approach would bring down the deficit by as much as one trillion dollars over the next two decades. (applause) still, this is a complex issue. and the longer it was debated, the more skeptical people became. i take my share of the blame for not explaining it more clearly to the american people. and i know that with all the lobbying and horse trading the process left most americans wondering "what's in it for me?" but i also know this problem is

not going away. by the time i'm finished speaking tonight, more americans will have lost their health insurance. millions will lose it this year. our deficit will grow. premiums will go up. patients will be denied the care they need. small business owners will continue to drop coverage all together. i will not walk away from these americans, and neither should the people in this chamber. (cheers and applause) so as temperatures cool, i want everyone to take at look at the plan we've proposed . there's a reason why many doctors, nurses, and health care

experts who know our system best consider this approach a vast improvement over the status quo. but if anyone from either party has a better approach that will bring down premiums, bring down the deficit, cover the uninsured strengthen medicare for seniors and stop insurance company abuses, let me know . (cheers and applause) let me know. let me know. i'm eager to see it. here's what i ask congress, though. don't walk away from reform. not now. not when we are so close. let us find a way to come together and finish the job for the american people. (applause) let's get it done. let's get it done

. now even as health care reform would reduce our deficit it's not enough to dig us out of a massive fiscal hole in which we find ourselves. it's a challenge that makes all others that much harder to solve. and one that's been subject to a lot of political posturing. so let me start the discussion of government spending by setting the record straight. at the beginning of the last decade, the year 2,000, america had a budget surplus of over $200 billion. (applause) by the time i took office, we had a one-year deficit of over one trillion dollars and projected deficits of eight trillion dollars over the next

decade. most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. on top of that, the affects of the recession put a three trillion dollar hole in our budget. all this was before i walked in the door. (laughter) (cheers and applause)

but families are tightening their belts. the federal government should do the same. (applause) so tonight i'm proposing specific steps to pay for the trillion dollars that it took to rescue the economy last year. starting in 2011 we are prepared to freeze government spending for three years. spending related to our national security, medicare, medicaid, and social security will not be affected. but all other discretionary

government programs will. like my cash-strapped family, we will work within a budget to invest in what we need and sacrifice what we don't. and if i have to enforce this discipline by veto, i will. (applause) we will continue to go through budget line by line page by page to eliminate programs that we can't afford and don't want. we've already identified $20 billion in savings for next year. the help working families, we'll extend our middle-class tax cuts. but at a time of record deficits we will not continue tax cuts for oil companies, for investment fund managers, and for those making over $250,000 a year. we just can't afford it.

(applause) now, even after paying for what we spent on my watch, we'll still face the massive deficit we had when i took office. more importantly, the cost of medicare, medicaid, and social security will continue to skyrocket. that's why i've called for a bipartisan fiscal commission modeled on a proposal by republican jud gregg and democrat kent conrad. (applause) this can't be one of those washington gimmicks that lets us pretend we solve a problem. the commission will have to provide a specific set of solutions by a certain deadline. now, yesterday the senate blocked a bill that would have created this commission. so i'll issue an executive order that will allow us to go forward because i refuse to pass this problem on to another generation of americans.

(cheers and applause) and when the vote comes tomorrow the senate should restore pay-as-you-go law that was a big reason for why we had record surpluses in the 1990s. (cheers and applause) now, i know that some in my own party will argue that we can't address the deficit or freeze government spending when so many are still hurting, and i agree, which is why this freeze won't take affect until next year when the economy is stronger. that's how budgeting works. (laughter)

but understand. understand, if we don't take meaningful steps to flain our debt, it could damage our markets, increase the cost of borrowing and jeopardize our recovery, all of which would have an even worse effect on our job growth and family incomes. from some on the right i expect we'll hear a different argument, that we just make fewer investments in our people, extend tax cuts, including those for the wealthier americans, eliminate more regulations, maintain the status quo on health care our deficits will go away. the problem is, that's what we did for eight years. (laughter) (applause) that's what helped us into it it

crisis. it's what help lead to these deficits. we can't do it again. rather than fight the same tired battle that have dominated washington for decades, it's time to try something new. let's invest in our people without leaving them a mountain of debt. let's meet our responsibility to the citizen who sent us here. let's try common sense. a novel concept. to do that, we have to recognize that we face more than a deficit of dollars right now. we face a deficit of trust. deep and corrosive doubts about how washington works. they have been growing for years. to close that credibility gap, we have to take action on both ends of pennsylvania avenue to end the outside influence of lobbyists, to do our work openly to give our people the government they deserve. ( applause )

now, that's what i came to washington to do. that's why for the first time in history, my administration posts on our white house visitors only. that's why we've excluded lobbyists from policymaking jobs or seats on federal boards and commissions. but we can't stop there. it's time to require lobbyists to disclose each contact they make on behalf of a client with my administration or with congress. it's time to put strict limits on the contributions the lobbyists give to candidates for federal office.

i don't think america's elections should be bank rolled by powerful interests or worse by foreign enemies. they should be decided by the american people. and i urge democrats and republicans to paz a bill that helps correct some of these problems. i'm also calling on congress to continue down the path of earmark reform. ( applause ) democrats and republicans. democrats and republicans. you've trimmed some of the spending. you've embraced some meaningful change.

but restoring the public trust demands more. for example, some members of congress post some earmark requests on line. ( applause ) tonight i'm calling on congress to publish all earmark requests on a single web site before there's a vote so that the american people can see how their money is being spent. of course, none of these reforms will even happen if we don't also reform how we work with one another. now, i'm not naive. i never thought that the mere fact of my election would usher in peace and harmony and some post-partisan era. i knew both parties have had divisions that are

deeply entrenched. and on some issues there are simply philosophical differences that will always cause us to part ways. these disagreements about the role of government in our lives, about our national priorities , and our national security, they've been taking place for over 200 years. they're the very essence of our democracy. but what frustrates the american people is a washington where every day is election day . we can't wage a perpetual campaign where the only goal is to see who can get the most embarrassing headlines about the other side, a belief that if you lose, i win. neither party should delay or obstruct every single bill just because they can. the confirmation of... ( applause ) i'm speaking to both parties now. the confirmation of well-qualified public servants

shouldn't be held hostage to the pet projects or grudges of a few individual senators. ( applause ) washington may think that saying anything about the other side , no matter how false, no matter how malicious, is just part of the game. but it's precisely such politics that has stopped arthur party from helping the american people. ( applause ) worse yet... worse yet it's sowing further division among our citizens, further distrust in our government. so, no, i will not give up on trying to change the tone of our politics. i know it's an election year. and after last week it's clear campaign fever has come even earlier than usual. but we still need to govern.

to democrats, i would remind you that we still have the largest majority in decades, and the people expect us to solve problems not run for the hill. ( applause ) and if the republican leadership is going to insist in the senate are required to do any business at all in thisown, a super-majority, then the responsibility to govern is now yours as well. just saying no to everything may be good short-term politics, but it's not leadership. we will sit here to serve our citizens, not our ambitions. ( applause )

so let's show the american people that we can do it together. this week... ( applause ) this week i'll be-- addressing a meeting of the house republicans. i'd like to begin monthly meetings with both democratic and republican leadership. i know you can't wait. ( laughter ) throughout our history , no issue has united this country more than our security. sadly, some of the unity we felt after 9/11 has dissipated. we can argue all we want about who's to blame for this, but i'm not interested in relitigating the past. i know that all of us love this country . all of us are committed to its defense. so let's put aside the

schoolyard taunts about who's tough. that's what is the false choice between protecting our people and upholding our values. let's leave behind the fear and division , and do what it takes to defend our nation and forge a more hopeful future for america and for the world. ( applause ) that's the work we began last year. since the day i took office, we renewed our focus on the terrorists who threaten our nation. we made substantial ininvestments in our homeland security and disrupted plots that threatened to take american lives. we have filling unacceptable gaps revealed by the failed christmas attack by better airline security and swifter

action on our intelligence. we prohibited torture and strengthened partnerships from the pacific to south asia to the arabian peninsula. and in the last year , hundreds of al qaeda's fighters and affiliates, including many senior leaders, have been captured or killed, far more than in 2008. in afghanistan, we're increasing our troops and training afghan security forces so they can begin to take the lead? july of 2011 and our troops can begin to come home. ( applause ) we will reward good governance, work to reduce corruption, and support the right of all... men and women alike. ( applause ) we're joined by allies and partners who have increased their own commitments and who will come together tomorrow in london to reaffirm our common purpose.

there will be difficult days ahead. but i am absolutely confident we will succeed. as we take the fight to al qaeda we are responsibly leaving iraq to its people. as a candidate, i promised that i would end this war. and that is what i am doing as president. we will have all of our combat troops out of iraq by the end of this august. ( applause ) we will support... we will support the iraqi government -- we will support iraqi government as they hold elections, and we will continue to partner with the iraqi people to promote regional peace and prosperity. but make no mistake-- this war is ending, and all of our troops are coming home. ( applause )

tonight, all of our men and women in uniform , in iraq, in afghanistan, and around the world , they have to know that we that they have our respect , our gratitude, our full support. and just as they must have the resource they need in war, we all have a responsibility to support them when they come home. ( applause ) that's why we made the largest increase in investments for veterans in decades.

( applause ) last year. that's why we're building a 21st century va, and that's why michelle has joined with jill biden to forge a national commitment to support military families. ( applause ) even as we prosecute two wars, we're also confronting, perhaps, the greatest danger to the american people. the threat of nuclear weapons. i've embraced the vision of john f. kennedy and ronald reagan through a strategy that reverses the spread of these weapons and seeks a world without them.

to reduce our stockpiles and launchers, while ensuring our deterrent, the united states and russia are completing negotiations on the farthest reaching arms control treat nenearly two decades. ( applause ) and at april's nuclear security summit, we'll bring 44 nations together here in washington, d.c. behind a clear goal: securing all vulnerable nuclear materials around the world in four years so that they never fall into the hands of terrorists. ( applause ) these diplomatic efforts have also strengthened our hand in dealing with those nations that insist on violating international agreements in pursuit of nuclear weapons. that's why north korea now face increased isolation and stronger sanctions , sanctions that are

being vigorously enforced. that's why the international community is more unite expected islamic republic of iran is more isolated. and as iran's leaders continue to ignore their obligations, there should be no doubt, they, too, will face growing consequences. that is a promise. ( applause ) that's the leadership we are providing-- engagement that advances the common security and prosperity of all people. we're working through the g-20 to sustain a lasting global recovery. we're working with muslim communities around the world to promote science and education and innovation. we have gone from a bystander to a leader in the fight against climate change. we're helping developing countries to feed themselves and continuing the fight against hiv-aids.

and we are launching a new initiative that will give us the capacity to respond faster and more effective ly to bioterrorism or an infectious disease, a plan that will counter threats at home and strengthen public health abroad. as we have for over 60 years, america takes these actions because our destiny is connected to those beyond our shores. but we also do it because it is right. that's why as we meet here tonight, will be over 10,000 americans are working with many nations to help the people of haiti recover and rebuild. ( applause ) that's why we stand with the girl who

yearns to go to school in afghanistan. why we support the human rights of the women marching through the streets of iran. why we advocate for the young man denied a job by corruption in guinea. for america must always stand on the side of freedom and human dignity. always. ( applause ) abroad, america's greatest source of strength has always been our ideas. the same is true at home. we find unity in our incredible diversity , drawing on the promise enshrined in our constitution, the notion that we're all created equal, that no matter who are you or what you look like , if you abide by the law, you should be protected by it. if you adhere to our common values

, you should be treated no different than anyone else. we must continually renew this promise . my administration has a civil rights division that is once again prosecuting civil rights violations and employment discrimination. ( applause ) we finally strengthened our laws to protect against crimes driven by hate. ( applause ) this year... this year, i will work with congress and our military to finally repeal the law that denies gay americans the right to serve the country they love because of who they are. ( applause ) it's the right thing to do. we're going to crack down on

violations of equal pay laws, so that women get equal pay for an equal day's work. ( applause ) and we should continue to work at fixing our broken immigration system to secure our borders, enforce our laws, and ensure everyone who plays by the rules can contribute to our economy and enrich our nation. ( applause ) in the end, it's our ideals , our values that built america. values that allowed us to forge a nation made up of immigrants from every corner of the globe. values that drive our citizens still. every day, americans meet their responsibilities

to their families and their employers . time and again they lend a hand to their neighbors and give back to their country. they take pride in their labor and are generous in spirit. these aren't republican values or democratic values that they're living by. business values or labor values. they're american values. unfortunately, too many of our citizens have lost faith in our biggest institutions -- our corporations, our media -- and, yes, our government-- still reflect these great values. each of these institutions are full of honorable men and women doing work that helps our country prosper, but each time a ceo rewards himself for failure or a banker puts the rest of us

at risk for his own selfish gain people's doubts grow. each time lobbyists game the system or politicians tear each other down instead of lifting this country up, we lose faith. the more that tv pundits reduce serious debates to silly arguments, big issues into soundbites, our citizens turn away. no wonder there's so much cynicism out there. no wonder there's so much disappointment. i campaigned on the promise of change. change we can believe in, the slogan went. and right now, i know there are many americans who aren't sure if they still believe we can change. or that i can deliver it. but remember this-- i never suggested that change would be easy. or that i could do it alone.

democracy in a nation of 300 million people can be noisy and messy and complicated, and when you try to do big things and make big changes, it stirs passions and controversies. that's just how it is. those of us in public office can respond to this reality by playing it safe. and avoid telling hard truths and pointing fingers. we can do what's necessary to keep our poll numbers high and get through the next election instead of doing what's best for the next generation. and i also know this-- that people made that decision 50 years ago or 100 years ago, or 200 years ago, we wouldn't be here tonight. the only reason we are here is because generations of americans

were unafraid to do what was hard. to do what was needed, even when success was uncertain. to do what it took to keep the dream of this nation alive for their children and their grandchildren. our administration has had some political setbacks this year. and some of them were deserved. but i wake up every day knowing that they are nothing compared to the setbacks that families all across this country have faced this year . and what keeps me going , what keeps me fighting is that despite all these setbacks, that spirit of determination and optimism , that fundamental decency that has always been at the core of the american people, that lives on

. it lives on in the struggling small business owner who wrote to me of his company. "none of us," he said, "are willing to consider even slightly that we might fail." it lives on in the woman who said even though she and her neighbors have felt the pain of recession, we are strong , we are resilient , we are americans. it lives on in the eight-year-old boy in louisiana who just sent me his allowance and asked if i would give it to the people of haiti. and it lives on in all the americans who dropped everything to go someplace they've never been and pull people they've never known from the rubble. prompting chants of, "u.s.a. u.s. a.. u.s.a.," when another life was

saved. the spirit that has sustained this nation for more than two centuries lives on in you , its people. we have finished a difficult year. we have come through a difficult decade. but a new year has come. a new decade stretches before us. we don't quit . i don't quit. let's seize this moment. to start anew, to carry the dream forward, and to strengthen our union once more. ( applause ) thank you, god bless you, and god bless the united states of america. ( cheers and applause ) >> lehrer: and there we have it. president barack obama 's first state of the union address.

by my watch 70 minutes or so, over 70 minutess. getting the considerations of speaker pelosi, vice president biden, mrs. obama, mrs. biden , the gallery. mark shields and david brooks are -- have been listening to the speech with me. the president is still in the hall. part of the ritual in and the ritual out. a reminder in a few moments-- about five minutes in fact, after the president leaves the house of representatives, governor bob mcdonnell, governor of virginia, will give the republican response. he will do so from the capital of virginia in richmond.

there he is now shaking the hands of his cabinet. >> thank you, guys. >> lehrer: timothy geithner, secretary of the treasury. patrick kennedy , just whispered in the president's ear, son of the late ted kennedy. as mark has pointed out before, there are some members of the house who make sure that they are positioned on the aisle so they can get this shot, get this handshake with the president. it doesn't matter if it's a republican or a democrat.

we'll stay with this, because sometimes you can hear things said that you -- you wouldn't want to miss. the congress from south carolina and majority whip of the house of representatives number three, right? >> mark: exactly. speaker pelosi. >> lehrer: a known supporter of hillary clinton in the democratic presidential race, and switched to barack obama later on.

at a very important time. >> it led to quite a major breach between him and former president clinton. >> lehrer: exactly. they were i have close. senator hear reid of course right there behind the president. behind hez right shoulder is the senator from nevada, the majority leader of the senate. running for reelection this year >> tough race. >> lehrer: tough race, very tough race because he's got two constituencies, of course. he has the people of nevada and plus the people of this hall plus a whole bunch of other people out there. and as a main constituent, he's got the president of the united states. >> mark: that's right.

>> lehrer: the president is about to leave. all right, there we have it. this part. act one. has just finished, with president barack obama leaving the hall. david, what's your overview about the speech. >> if he took out health care and just read this speech you wouldn't think it was a particularly liberal speech. there are a lot of tax cuts. there's a spending freeze. there's pay as you go, nuclear power, free-trade pacts. i was struck by how moderate the speech was. if you took away all the fighting of the last year and we had started with this, i think the atmosphere in washington would probably be a little different than it is now. >> i think david's overly optimistic about that, and we'll

never know. what strk me, jim, i had an interview this afternoon with superior court pelosi, and i asked her what she was hoping for. and she said, "the president is the message." and, boy, that was true tonight. and he was the message. i mean, he started with the seriousness and solemnity of tone about the gravity of the situation in the country , and then he turned the corner to otimism, and this was a rag quality to it-- this is going to i know, make uncomfortable both supporters and critics of the president, but he evoked the country's past to give a sense of confidence about where we are now. and nobody did that better than ronald reagan. the past triumphs, the past adversity. and i just-- the one problem i had with the speech-- and i thought the health care section was the strongest. it was 11 page sbodz the speech before he even addressed the

subject of health care but he did it quite, i thought, strongly, and , you know, laid it out that this has took place done. and he has said this is a challenge. >> lehrer: david what, do you think-- we discussed this earlier whether the president would speak directly about the polarization of the congress. he came right at them. what did you think of that? >> i think that's the message they took away from massachusetts, and that's the message, i think, he hammered home very well, and he said a couple of times, i think ad libbing, saying i'm talking to democrats as well as republicans here. and i actually-- on the health care thing, i thought he hit a very bipartisan note. there was a question of whether he would say the dpital gains tl

businesses. there's a lot of stuff that you normally hear from the mouths of republicans. obviously, we're not going to have bipartisanship now, but i-- again, i'm struck by the general tone of moderation. >> lehrer: you think at a difficult time? >> it waslead is. where is the "let us march" line he was pretty blunt and pretty specific about how we got to where we are. we talked about the decade we've been through and the failure to fund two wars and the tax cuts of the bush years, that that was the deficit he had and it confronted him when he came in. he was pretty , you know, candid, i thought, about that. >> lehrer: let me just say-- we're just going to show the picture here. we're going to go to richmond, virginia. that is the state capital in richmond, where governor bob

mcdonnell is about to give the republican response. as we discussed earlier, this ends the-- they have now a competitive scene for are -- for the response. this has never happened before. it's always been in a room somewhere in the capitol standing there in a cold room and looking out at the camera. >> he learn sfrd bobby jindle. >> lehrer: right, bobby jindal did this latter year and to say he was not a raging success, a lot of its had to do with the setting. the folks in the hall there with the governor are his friends, members of his staff , and others who have been invited. it's a friendly crowd, and they will-- he will have eye contact, just like the president does,

when he's speaking to the house and the senate in a joint session. all right, and he's take the -- taking the podium , and here we go. governor bob mcdonnell of virginia. >> thank you. ( applause ) thank you very much. thank you. good evening. i'm bob mcdonnell. 11 days ago, i was honored to be sworn in as the 71st governor of virginia. i'm standing in the historic house chamber of virginia's capitol, a building designed by virginia's second governor, thomas jefferson. it's not easy to follow the president of the united states . my 18-year-old twin boys have added pressure to me tonight by giving me exactly 10 minutes to finish before they leave to go watch sportscenter. ( laughter ) i'm joined by fellow virginiaians to share a republican perspective on how to best address the challenges facing our nation today.

we were encouraged to hear president obama speak this evening about the need to create jobs . all americans should have the opportunity to find and keep meaningful work, and the dignity that comes with it. ( applause ) many of us here tonight and many of you watching have family or friends who have lost their jobs. in fact, one in 10 americans is unemployed. that is unacceptable. here in virginia, we face our highest unemployment rate in more than 25 years, and bringing new jobs and more opportunities to our citizens is the top priority of my administration. good government policy should spur economic growth and strengthen the private sector's ability to create new jobs. ( applause )

we must enact policies that promote entrepreneurship and innovation so america can better compete with the world. what government should not do is pile on more taxation, regulation, and litigation that kill jobs and hurt the middle class. it was thomas jefferson who called for a wise and frugal government which shall leave men free to regulate their own pursuits of industry and shall not take from the mouth of labor the bread it has earned. he was right. today, the federal government is simply trying to do too much. last year, we were told that massive new federal spending would create more jobs immediately and hold unemployment below 8%. in the past year, more than three million people have lost their jobs . yet, the democratic congress continues deficit spending, adding to the bureaucracy, and increasing the national debt on our children and our grandchildren.

the amount of debt is on pace to double in five years and trip nel 10. the federal debt is now over $100,000 per household. this is simply unsustainable. the president's partial freeze on discretionary spending is a laudable step but a small one. the circumstances of our time demand that we reconsider and restore the proper limited role of government at every level. ( applause ) without reform, the excessive growth of government threatens our very liberty and prosperity. in recent months the american people have made clear they want government leaders to listen and then act on the issues most important to them.

we want results, not rhetoric. we want cooperation, not partisanship. ( applause ) there is much common ground. all americans agree that we need a health care system that is affordable, accessible, and high quality. but most americans do not want to turn over the best medical care system in the world to the federal government. republicans in congress have offered legislation to reform health care without shifting medicaid costs to the states, without cutting medicare, and without raising your taxes. and we will do that by implementing commonsense reforms like letting families and businesses buy health care insurance policies across state lines and ending frivolous lawsuits against doctors and hospitals that drive up the cost of your health care.

and our solution aren't thousand-page bills that no one has fully read after being drafted behind closed doors with special interest. in fact, many of our proposals are available online at solutions.gop.gov, and we welcome your ideas on facebook and twiter. ( laughter ) all americans agree that this nation must become more energy independent and secure . we are blessed here in america with vast natural resource, and we must use them all. advances in technology can unleash more natural gas, nuclear, wind, coal, alternative energy that will lower your utility bill. here in virginia, we have the opportunity to become the first state on the east coast to explore for and produce oil and natural gas offshore. ( applause )

but this administration's policies are delaying offshore production, hindering nuclear energy expansion and seeking to impose job-killing cap-and -trade energy taxs. now is the time to aadopt insoivateive technology that increase jobs and lower energy prices. all americans agree that a young person needs a world-class education to compete in the global economy. as a young kid, my dad told me, "son, if you want a good job, you need a good education." dad was right, and that's even more true today. the president and i agree on expanding the number of

high-quality charter schools and rewarding teachers for excellent performance, more school choices for parents and students mean more accountability and greater achievement. a child's educational opportunity should be determined by her intellect and work ethic not by her zip code. ( applause ) all americans agree that we must maintain a strong national defense. the courage and success of our armed forces is allowing to us draw down troop levels in iraq , and that government is increasingly able to step up. my oldest daughter, janine, was an army platoon leader in iraq, so i am personally grateful for

the service and sacrifice of all our men and women in uniform and a grateful nation thanks them. ( applause ) we applaud president obama's decision to deploy 30,000 more troops to afghanistan . we agree that victory there is imperative for national security. but we have serious concerns over the recent steps the administration has taken regard suspected terrorists purpose americans were shocked on christmas day to learn of the attempted bombing of a flight to detroit. this foreign terror suspect was given the same legal rights as a u.s. citizen and immediately stropd providing critical intelligence. as senator-elect scott brown has said we should be spending taxpayer dollars to defeat terrorists, not protect them.

( applause ) here at home , government must help foster a society in which all our people can use their god-given talents in liberty to pursue the great american dream. republicans know government cannot guarantee individual outcome but we strongly believe it must guarantee equality of opportunity for all. that opportunity exists best in a democracy which promotes free enterprise, economic growth, strong families, and individual achievements. many americans are concerned about this administration's efforts to exert greater control over oil companies, banks, energy, and health care. but over-regulating employers won't create more employment. overtaxing investors won't

foster more investment. top-down, one-size-fits-all decision making should not replace the personal choice of free people in a free market nor undermine the proper role of state and local government in our system of federalism. as our founders clearly stated, and we governors clearly understand, government closest to the people governs best. ( applause ) no government program can ever replace the actions of caring americans freely choosing to help one another . the scriptures say to whom much is given much will be required. as the most generous and

props prus nation on earth it is heartwarming to see americans giving so much time and money to the people of haiti. thank you for your ongoing compassion. ( applause ) some people say they're afraid that america's no longer the great land of promise that she has always been. they should not be. america will always blaze a trail of opportunity and prosperity . america must always be a land where liberty and property are valued and respected and innocent human life is protected government should have this clear goal-- where opportunity is absent we must create it. where opportunity is limited we must expand it. where opportunity is unequal, we must make it open to everyone. ( applause )

our founders pledged their lives their fort expunz their sacred honor to create this great nation. now we should pledge as democrats, republicans, and independence, americans all, to work together, to lead this nation-- leave this nation an even better place than woe found it. god bless you and god bless this great land of america. thank you very much. ( applause ) >> lehrer: ask that was virginia governor bob mcdonnell giving the g.o.p. response to president obama's state of the union address. now we have some closing thoughts from shields and brooks first, mark, what did you think of the governor's response? >> the governor's a very appealing jim. he was faithful to the virginia

tradition of ancestor worship. he talked about the founderers and jefferson at least five times and got his biggest hand about drilling offshore in virginia, which had been a big issue in his campaign. it was both a national speech and a local speech, and, i mean, it was sort of virginia-based and, you know, i think as these things go it probably worked better than most. >> lehrer: what do you think, better than most? >> i think we're not going to see a guy standing alone in a room anymore. >> lehrer: no. it's a whole new thing. >> bring your crowd, your entourage. we'll get an hbo special. you get some human reaction. you think, oh, that person likes him. that's pretty good. and so i thought it was pretty effective. he spoke it a little too fast, but he clearly had his theme, more anti-government, more jeffersonian, the government that governs least governs best

and that obviously will be the republican theme. >> lehrer: do you think he was effective in laying that out, snrdz, this is what the government believes now in the years of the obama administration. >> they had sort of forgotten what they believed in, in the era of tom delay. it's the theme. it's what brown ran on. the republicans make this big principled argument, at least tonight, against government, but obama doesn't actually make an argument for government. he says i'm cutting your taxs, too. i'm for offshore drilling, too. he's much more practical but there's no counter-argument. >> lehrer: back to the obama speech. everybody said he had to do something tonight. did he do it? define what "it" is, and did he do it, mark? >> he did everything tonight. >> lehrer: he did everything. >> jobs, deficit, freeze on government spending, health, education, the recovery act, he embraced bipartisanship

and condemned partisanship. nuclear wrngz, in national security. i mean, there really...-- wasn't-- it was a supermarketave speech. to me the theme was one of turning the corner on optanism, we have done this , we're a great people but it wasn't something you walked way away and said, okay, let us march in this direction. but that's-- i'm just not sure what the lead is. >> lehrer: david what, about the idea going that he need-- his deficit was that he hadn't demonstrated to the american people their pain, that he understood their pain. >> i thought he did that quite well, actually, in the first third or quarter of the speech, he resonate with the unemployed and people like that. i thought that was one of the successful parts of the speech. >> lehrer: do you agree with that, mark? >> i do. when he got to the eager vegetables section of the speech eliminating the tax

cuts and oil companies and investment funds, boy, there was little applause in the hall on that. they applauded all the big-ticket items. >> lehrer: is it a speech that deserves to be remembered and probably will be, or is it just a speech? >> well, i can't remember the content-- i thought it was a good speech. i think this was a very good night for him aside from the attack on tv pundits. >> lehrer: i'm so glad you brought that up, took that hit on tv pundits. but he wasn'ting talking about you all. >> he certainly was. and i'm taking it personally. i'm taking umbrage with it. >> lehrer: that aside, do you think this was a speech to be remembered? >> no. i think it worked. i think it was a work man-like speech. he gives a very good speech, far better than most, but i don't think it's a-- it's not going to go down with the four freedoms of franklin roosevelt in the state of the union speech. it's not going to be down with lyndon johnson. it's just not going to be

remembered in that sense unless his presidency turns from this point--. >> lehrer: that's what started-- >> that's right. >> lehrer: all right. david, mark, thank you both very much. and our state of the union coverage tons line. hari sreenivasan previews what's there. >> now we want your reaction to the president's speech. you can post a video response on our youtube channel or post comments on our blog and we will feature a few on our broadcast. some of the our experts are annotating the full text of the speech with context, commentary, and background. you'll find that on line as well later this evening we'll post interviews of lawmakers from capitol hill. that you will and more is at our web site, newshour.pbs.org. >> lehrer: that ends our special edition of the newshour. we'll have

analysis and reaction to the president's speech right here tomorrow evening on the newshour. for now, i'm jim lehrer. thank you, and good night. captioning sponsor [dramatic violin music] ♪ [people talking simultaneously] ♪ [birds twittering] [gentle music] ♪

[ominous music] >> [gasping] >> elsie, what's the matter? elsie!

>> [breathing heavily] [gasping] [whimpering] [sobbing and panting] [birds twittering]

>> so, watson... >> hmm? >> you do not propose to invest in south african securities? >> how on earth do you know that? >> now, confess: you are utterly taken aback. >> i am. >> i should make you sign a paper to that effect. >> why? >> because in a few minutes, you will say it is all so absurdly simple. >> i shall say nothing of the kind. >> you see, my dear watson, it is not really difficult to construct a series of inferences each dependent upon its predecessor and each simple in itself.

if, after doing so, one simply knocks out the central inferences and presents one's audience with the starting point and the conclusion, one may produce a startling, though possibly a meretricious effect. i can tell by an inspection of the groove between your left forefinger and thumb that you have decided not to invest your small capital in the gold fields. >> i can see no connection. >> very likely not. but i can quickly give you a close connection. here are the missing links in the very simple chain: you had chalk between your forefinger and thumb when you returned from the club last night. you put chalk there when you play billiards, to ease the cue. you never play billiards except with thurston. now, thurston, you told me four weeks ago, had an option on some south african security which expired in a month and which he desired you to share with him. your checkbook is locked in my drawer, and you have not asked for the key, so you do not propose to invest your money

in that manner. >> [chuckling] how absurdly simple. [sighs] >> quite so. every problem is absurdly simple when it is explained to you. ba-bum-bum-bump. >> holmes, why are you so cheerful? you're unemployed. you have no case to solve. now, normally, that produces black moods and the infernal lethargy of the cocaine bottle. >> you have not used the logical principles which i constantly expound. >> sherlock holmes is cheerful, so sherlock holmes must have a case. >> pah! see what you can make of that, friend watson. >> why, holmes, it's a child's drawing. >> ah, is that your idea? >> well, what else should it be? >> well, that is what a mr. hilton cubitt of ridling thorpe manor,

derbyshire, is anxious to know. that conundrum came by the first post, and he is to follow by the next train. [hooves clopping] >> hilton cubitt. >> no, no, i have already looked him up, watson. his family has owned land in derbyshire for over 500 years, so i presume that mr. cubitt is as respectable as he is worthy. >> with a fresh face, an open countenance, and wearing a brown bowler hat. >> oh, now, you cannot possibly know that. >> really, holmes? [knock on door] >> you will stay and keep a record of the case? >> my deer fellow.

[door shuts] >> thank you, mrs. hudson. this way, mr. cubitt. >> mr. sherlock holmes. >> hilton cubitt. >> this is my friend and colleague dr. watson. >> dr. watson, sir. >> how do you do? do sit down, mr. cubitt. >> thank you. s-so what do you make of it, gentlemen, this thing? have you had time to study it? >> absurd little figures dancing in a line; it's a childish prank. why do you attach importance to something so trivial? >> i don't, mr. holmes. i never should. no, no, it's my wife, you see. she... >> go on, mr. cubitt. you're with friends. >> well, it's frightened her almost to death. she says nothing, tries to appear normal, but i've never seen anyone so upset.

>> a white chalk on a garden seat. it is a precise copy? >> it's as exact as i could make it. i did think it might be the stable boy, but the lad denied it. if there's any danger threatening my wife, mr. holmes, i'd spend my last penny to protect her. >> do sit down, mr. cubitt. >> do you smoke, mr. cubitt? >> uh, yes--uh, no, no, no, i won't; thank you. >> tell us about your wife, mr. cubitt. >> well, uh... i've always lived in derbyshire, ridling thorpe manor, near matlock. i was a bachelor and thought i'd remain one until three years ago, i came down to london on a visit. it's a rare thing for me, but, well, i had a mind to see the queen's golden jubilee. i-i put up at a boardinghouse in russell square because parker-- he's the vicar of our parish--

he was staying there. there was also a young american lady staying there. patrick was her name, elsie patrick. we were both alone, and we became friends, did the sights and that. >> at your expense? >> certainly not. are you suggesting-- >> no, he's not, mr. cubitt, not at all. >> was this miss elsie patrick in london merely for the jubilee? >> no, no, no, she'd been here some time. she'd tired of america, traveled about, and finally settled in england. well, not to make a labor of it, before my holiday was over, i was as much in love as any man ever has been. to my surprise and joy, she-- she reciprocated my feelings, and we were married. >> excellent. >> quietly, in a register office. you think i'm mad, mr. holmes, taking a wife in such a fashion,

knowing nothing about her or... >> explain, mr. cubitt, and come to the point. >> oh, uh... yes, in fact, it was on the very day of our marriage-- nothing could have made me unhappy, nothing on that day. but now i look back, it was odd. elsie? [hooves clopping loudly] >> there's something i have to say to you, hilton. >> we don't want to be late, my dear. >> i've put it off till now, but i must still give you the chance to change your mind. >> [concerned] elsie. what in the world-- >> let me finish. and what i say, i do mean. i love you dearly, but you know nothing of my life before we met. >> i never asked. >> one of the things which has

made me so fond of you. if you marry me, hilton, i promise you marry a woman who has nothing personally to be ashamed of. but you'll have to take my word for it and allow me to be silent forever as to my life before we met. if that's too much to ask, then you must go back to your derbyshire and leave me to the lonely life in which you found me. >> it's little enough to ask, and i shall never let you go. these have been the happiest three years of my life. >> and when did the first cloud cover the sun of this great happiness? >> [inhales] you have a way of putting things, mr. holmes. >> and you have a way of prevaricating with your answers, mr. cubitt. >> well,t